The ‘trend is your friend’, until an epic reversal occurs…
There is a chart that every silver investor needs to see. Especially now, as the Fed and Central Banks continue to manipulate the precious metals lower while propping up the broader stock and bond markets. Even though precious metals sentiment is at record lows, this normally represents a turning point in the gold and silver markets.
Silver Eagle sales held up much better than Gold Eagles in 2014. According to my year-end estimates, 2014 Silver Eagle sales will only decline 13% year-over-year, while Gold Eagle will fall 45%.
Now… let’s get to the chart I believe every silver investor needs to see:
Overnight, CME Group Inc., the world’s largest futures market, halted all of its Globex electronic trading markets, including gold and silver, for four hours due to a “technical glitch.”
All other Globex electronic trading markets, including U.S. Treasury’s, oil, gold and U.S. stock indexes were affected with many markets having order routing problems.
“It’s so blatantly obvious that even a caveman can see it”
The front month silver contract on the Shanghai Futures exchange is currently trading at an 8% premium to the LBMA price and the futures curve there is in backwardation, indicating a very tight physical market.
Roughly 80% of the physical silver from the SFE vaults have been removed.
On the Moscow Exchange, silver trades at a 16.8% premium to the LBMA price.
But this is what we get in the lawless United States:
Today, we don’t have cheap oil to pull us out of the huge mess we are facing as the Global Financial System is loaded with Debt, Derivatives and Fraud as far as they eye can see.
When the highly leveraged Global Financial System finally crashes, it will pull down the energy industry with it. Thus, a great deal of the supposed forecasted growth of oil and gas will no longer be commercially viable.
This will also destroy a great deal of the PAPER CLAIMS such as futures, options, derivatives and etc, leaving a mad dash for physical assets. Some think we will see Deflation… we may. However, I believe it will be DEFLATION in the value of paper claims with a huge RISE in the value of the physical asset.
It will be the disintegration of the 100 paper claims on gold and silver that will implode to zero, while the actual physical bullion will hit levels thought unimaginable.
When this occurs… remember my favorite line:
GOD HATH A SENSE OF HUMOR.
The new daily silver fix regime has begun. It will be run on the Chicago Mercantile Exchange’s platform (the Comex people), and supervised by Thompson Reuters. For the first six months access to the fix for observers will be free, so we can all see how it works.
This is a welcome advance on the old silver fix, where bullion banks negotiate the price in secret. This should be positive in the longer-term, because market transparency tends to lead to wider institutional and public participation. We are a long way from a fully transparent market, but at least the veil of dealing secrecy is being lifted a little.
Imagine you are running a hedge fund. You don’t deal in gold or silver because the physical market is too opaque. Now we have a visible auction process in silver, which you can watch on-line. You can monitor it for a week or two to get better a feel for how much money is required to move the price. It’s not just you, everyone else is also getting interested. Now you can assess your dealing risk far better and will be prepared to deal. And you look forward to the gold market becoming more transparent as well.
We are seeing a very important change in bullion markets to the disadvantage of dealers who hide behind OTC opacity.
The Battle Royale continues as the cartel has hammered gold back under $1300 once again with a last of $1293, and silver has been knocked under $19.50 to $19.45 on heavy volume the first day without an official London Silver Fix.
Physical silver bullion sales exploded at SDBullion Wednesday, hours before the London Fix price setting mechanism was set to end on August 14th.
The London fix, which has been in place for 117 years dating back to 1897, announced in April that the daily silver fix would end on August 14th, when Deutsche Bank, under investigation by Germany’s BaFin for market manipulation vacated its seat and was unable to find a buyer.
SDBullion trader Jennifer Linhart stated that physical silver sales were five times normal volume Wednesday, as investors scooped up bullion ahead of any market disruption the end of the fix might cause:
“The phones were ringing off the hook all day, and silver sales were about 5 times normal for the day. We didn’t see much of any change in gold, everyone was buying silver.”
Myself and a few others – primarily GATA – have been suggesting for quite some time that
While certain newsletter peddlers adamantly maintain the reports are accurate and honest in order to preserve their franchise, there’s nothing like the CFTC imposing a fine on JP Morgan for fraudulently reporting “large trader” data: CFTC Charges JP Morgan With Reporting Fraud.
JP Morgan has finally been caught and sanctioned for playing games with its position reporting in gold and silver in order to hide the true magnitude of its unhedged short positions on the Comex.
The International Swaps and Derivative Association (ISDA) published their position on the changing of the “SILVER-FIX” with the new “LONDON SILVER PRICE” and the ramifications are earth shattering for silver derivative holders:
WHAT WAS ANNOUNCED WAS A SHOCKING “GET OUT OF JAIL FREE” CARD FOR THE SILVER DERIVATIVE SHORTS AND GUARANTEED TO THROW THE SILVER DERIVATIVE MARKET INTO CHAOS as none of the silver derivative contracts are legally binding after the London Fix ends August 14th!!
Perhaps this is why Deutsche Bank could not find a single buyer for its seat on the London Fix: the bank, along with HSBC have been officially accused on manipulating the silver fix in a new suit filed in federal court in Manhattan over the weekend.
David Quintieri author of The Money GPS joins the SGTReport to discuss the collapse of the international banking and monetary systems. We also cover the great Wall Street SILVER FRAUD in detail.
According to Bloomberg the “silver market” is a “$5 TRILLION DOLLAR market”. However, given that we know that only 700-800 million ounces of PHYSICAL silver are mined from the ground every year, the ACTUAL gross silver market is at best worth $15-20 Billion a year!
Bloomberg is admitting that the great Wall Street silver paper PONZI market is at least 250 times larger that the actual PHYSICAL market… ANNUALLY.
They see the kill in the not too distant future, they taste the blood that is not yet extracted from their victims. They are a bloodthirsty lot, indeed.
Writer and researcher Jan Skoyles joins the SGTReport to discuss German gold, the paper silver and gold Ponzi, three dead international bankers in one week and the stunning work of her pal Koos Jansen, the man Harvey Organ calls “the go-to researcher” when it come to Chinese gold accumulation and the Shanghai Gold Exchange.
What a difference a few days makes! I was away for the bulk of this week and had no internet access for 2 days, it looks like the world changed (it did not, only the perception) in the blink of an eye. 2 weeks ago was day 1 of the “2 day smash” in Gold and Silver, here we are 2 weeks later and even the most asleep at the wheel and uninformed can see and knows that the “price” just ain’t the price!